Related Risks
We offer a wide range of insurance services to the Greek shipping industry from risk placement to expert claims handling. With extensive experience and knowledge we create tailor made solutions, whether for large fleets or single vessels, including subsequent coverage options for the hull, the machinery and the equipment, as well as for financial losses:
The “Additional Perils Clause” can be used with the ITC – Hulls 83’. When added in the H&M cover for an additional premium it extends the insurance to cover:
- The cost of repairing and replacing
- Any boiler which bursts or shaft which breaks
- Any defective part which has caused loss or damage to the vessel
- Loss of or damage to the Vessel caused by any accident or by negligence, incompetence or error of judgment of any person whatsoever.
As a result, the insurance policy becomes a “FULL RISK COVER”.
Increased Value cover provides the Shipowner with the excess cover, over and above the Hull and Machinery policy, in cases of Total losses and General Average contributions (if required). This is usually limited to the 25% of the H&M value as per the standard Disbursements warranty but its breach can be specifically agreed upon and endorsed to the H&M policy.
War risks insurance covers any ocean going vessel in case of a War or War-like activity. There are certain War areas declared by the Joint War Committee which are excluded from the territorial waters of the H&M cover. In order to transit these areas the Shipowner after advising his War underwriter has to pay an Additional Premium (AP) to secure cover whilst transiting. Piracy was typically covered under the H&M policy, as a standard listed peril in the ITC Hulls 83’, however, nowadays is usually excluded and thus incorporated into the War policy.
In recent years the necessity to obtain additional cover through a ‘Kidnap & Ransom’ policy of insurance has become vital for Shipowners who conduct transits in areas of increased pirate activity. The most dangerous areas are the Gulf of Aden and the Indian Ocean off the north east coast of Africa, emanating mainly from Somalia, but ranging as far out as the south east coast of India and Pakistan, as well as reaching the mouth of the Persian Gulf. Moreover, incidents off the West coast of Africa have also begun to increase both in frequency and severity.
K&R policies cover the Shipowner from the subsequent financial loss incurred by means of a lump sum ransom payment made to pirates for the release of their vessel or even the release of the crew which have been taken off the vessel. In addition specialized K&R underwriters, offer a valuable service of making available experienced expert negotiators and technical security services to the assured, who heavily assist in the coordination and negotiation of such incidents.
This type of insurance protects the shipowner from a daily loss of income arising from physical damage to the vessel. The loss can be the result of damage to the vessel, recoverable from the underlying hull and machinery cover. The extent of the insurance and the premium are the result of the daily indemnity during a certain period per casualty and per policy year.
Loss of hire insurance is based on days (or part of days) when the vessel is off-hire due to a claim recoverable under H&M insurance. When the period exceeds an agreed number of deductible days (usually 14 days) the assured has a valid claim under the policy.
There is also a set upper limit per claim, specifying the number of days the assured is paid under the insurance (usually 60,90 or 180 days), as well as an overall limit per policy year. In case where the vessel exceeds the set number of days per year during the policy life, the assured has the choice to reinstate the cover for the remaining period of the policy year by paying an additional premium.
Delay cover is a loss of earnings insurance that covers off-hire or detention resulting from events onboard and/or ashore which are beyond assured’s control like: collision with another vessel, striking any fixed or floating objects, fire, explosion, port/waterway closure, bad weather conditions, boycotts, strikes of stevedores and other port services and more.
Owners, operators, and charterers can apply for coverage with the maximum limit usually being USD 4 million.
Usually it is combined with a Loss of Hire policy to provide protection below traditional Loss of Hire deductible of 14 or 21 days.
Cyber Risk cover (Clause 380 buy-back) is a pure re-instatement of the 380 exclusion for a vessel’s underlying H&M, IV, LoH and/or WAR policy. This means that the Cl. 380 Buy-back insurance covers the risks expressly excluded from coverage under Cl. 380, i.e. damage or loss that would have been recoverable under the policy if not for the exclusions under Cl. 380, which are defined as follows:
1.1 Subject only to Clause 1.2 below, in no case shall this insurance cover loss damage liability or expense directly caused by or contributed to by or arising from the use or operation, as a means for inflicting harm, of any computer, computer system, computer software, malicious code, computer virus or process or any electronic system.
1.2 Where this Clause is endorsed on policies covering risks of war, civil war, revolution, rebellion, insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power, or terrorism or any person acting from a political motive, Clause 1.1. shall not operate to exclude losses (which would otherwise be covered) arising from the use of any computer, computer system computer software program, or any electronic system in the launch and/or guidance system and/or firing mechanism of any weapon or missile.
Cyber Threat and Extortion cover offers a 24/7 high quality response service through a crisis consultant company which is specialized on cyber risks and has great experience in handling cyber extortion incidents. Furthermore an extensive loss prevention program is provided where the organization as a whole is taken into account, including the systems and cyber security of the vessels.
Usually it is combined with a Cyber Risk cover providing the client complete and comprehensive cyber coverage, for both the threat of and actual physical loss as a result of a cyber-attack. Threat & extortion cover is tailor-made for the marine industry and is designed to handle the on-board threats, as well as the onshore organization. It also provides cover for Loss of hire for the vessel(s) affected and Business interruption as a result of an insured event.
The available sum insured for Cyber Threat & Extortion is commonly USD 5M per event, for all risk elements combined (i.e. not separate limits). Deductible for Cyber Threat & Extortion is typically in the USD 25 000 – USD 50 000 range, whereas the LOH and Business Interruption deductibles are 72 hrs.
The term ‘collision’ is defined as actual contact with another vessel, although an insured vessel may also be held liable for damages to a third vessel, which was struck by the vessel with which the insured vessel collided. This may be demonstrated for instance where an insured vessel is being towed and the tug is involved in a collision with a third vessel. The towed vessel would normally be held liable and a claim under the collision liability insurance would be triggered.
Traditionally, one-fourth of collision liability cover would be retained by the P&I clubs, with the remaining three fourths to be covered by hull and machinery underwriters. In practice, however, owners may seek full coverage for their collision liabilities either from P&I or from hull and machinery underwriters. We try to achieve the best rates for the specific client’s preference, whichever the case might be.
Bankers require a certain level of contingency when handing out a loan to a shipowner. With this in mind, they take out a Mortgagee’s Interest Insurance (MII) policy that provides them a level of security, when claims under borrowers’ policies are found to be void and or voidable. Thus insuring that fact that the bank will be covered in the contingent that there is a total or partial loss which causes the assignments to owner’s policies to fail.
The risk of claims being declined or declared void because of a breach of warranty or breach of condition by the shipowner may cause the bank to lose cover. The only way for them of covering these risks is by an MII. Due to increased regulations that shipowners must now comply with and the subsequent tightening of the marine hull clauses that followed the standard Institute Mortgagee’s Interest Clauses are wholly inadequate in covering all financier’s risks.
This is a type of marine insurance designed to provide coverage for the liabilities including those of care, custody, and control (CCC) assumed by a party chartering a vessel when the vessel’s operation remains in the control of the vessel’s owner.
Under a charter agreement also known as a charter party, the chartering party may occasionally agree to be responsible for some of the liabilities associated with the voyage like damage that the ship might incur while loading and unloading the charterer’s cargo or the loss of the use of the vessel when it is involved in a collision. The insurance normally covers damage to the vessel and may also provide coverage for other types of damage or injury for which the charterer becomes legally liable.
We provide our clients with Crew Personal Accident (CPA) cover in so far as their proportion of the P&I deductible is concerned. Where a shipowner has a crew deductible of say $10,000 per claim, we are able to cover this deductible in a CPA cover. In addition we offer expert claims management services.
This insurance provides cover to the Crew against several risks, while also providing compensation in case of expenditures that are connected with crew claims. It provides compensation for expenses incurred in the case of Crew Accident or Illness. Hospital expenses as well as other medical and non medical expenses, transportation costs to the hospital and then back to the vessel and substitution costs like airplane tickets. In case of death, it compensates the full amount of the deductible and it also provides the funeral expenses for the family of the crew member.